MURIEL BOWSER
MAYOR
June 14, 2024
Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Pursuant to section 451 of the District of Columbia Home Rule Act (D.C. Official Code § 1-
204.51), enclosed for consideration and approval by the Council of the District of Columbia is an
in-lease agreement with 1009 11th Associates, LLC, for 30,528 square feet of space located at
1009 11th Street, NW. The leased premises will be utilized by the Department of Human Services.
If you have any questions regarding this contract, please contact Delano Hunter, Director,
Department of General Services (“DGS”), or have your staff contact Tiwana Hicks, Associate
Director, Portfolio Management Division, DGS, at (202) 727-2800.
I look forward to the Council’s favorable consideration of this contract.
Sincerely,
Muriel Bowser
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
COUNCIL REAL ESTATE CONTRACT SUMMARY
June 5, 2024
Please note that any capitalized term used but not defined in this Summary shall have the meaning
given to such term in the proposed real estate contract.
1. The name of the proposed lessor, lessee, grantor or other party to the proposed real estate
contract, the type of real estate contract, the source selection method, the primary term
of the real estate contract (if applicable), and the consideration to be paid by the District
(for leases, the total annual rent for the first year and the fiscal years set forth in the
Funding Certification):
Contract Party Name: 1009 11th Associates, LLC, a District of Columbia
limited liability company (“Landlord”)
Type of Real Estate Contract: In-Lease Agreement (District is tenant) (the “Lease”)
Location of Real Property: 1009 11th Street, NW
Source Selection Method: Non-Competitive as to new Lease
Primary Term (if applicable): 15 years and 8 months
Consideration to be paid by District:
- First Lease Year Annual Rental
August 1, 2024 through
March 31, 2025: $1,268,217.28
- Certificate of Funding
Fiscal Year 2024: $317,054.32
2. If the real estate contract is a lease, a breakdown of the Annual Rental for the first Lease
/Year set forth above, the scheduled escalations thereof and known first Lease Year
Additional Rent obligations (e.g., parking and supplemental HVAC costs):
Annual Rental from August 1, 2024 through March 31, 2025 (“Phase I Term”):
Annual Rental (inclusive of operating $158,527.16 $1,268,217.28
costs and real estate taxes) (monthly) (total for Phase I Term)
No Annual Rental from April 1, 2025 through March 31, 2026 during building renovation.
3924 Minnesota Avenue, NE, 6th Floor, Washington, D.C. 20019 • Telephone (202) 727-2800
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Annual Rental from April 1, 2026 through April 30, 2041 (“Phase II Term”):
Components of Annual $/RSF/YR Annual Total Annual Escalations during Phase
Rental For Phase II II Term
Term
Net Rental $47.75 $1,457,712.00 2.67%
Initial Operating Costs* $8.20 $250,329.60 CPI-based
Initial Real Estate Taxes $4.63 $141,344.64 Based on actual increases in Real
Estate Taxes
Tenant Improvement $3.33 $101,658.24 N/A
Allowance Amortization
Total Annual Rental $63.91 $1,951,044.48 N/A
*Net of utilities
Known Additional Rent Obligations for First Lease Year of Phase II Term
Components Per Month Annualized Escalations after first Lease
Year
Utilities $10,939.20 $131,270.40 Escalations based on actual
(estimate based on (estimate based on usage
anticipated usage) anticipated usage)
3. If the real estate contract is a lease, a description of any options to renew the primary
lease term set forth above, the contract amount for the primary lease term and each
option period (and an explanation of any difference), and a description of any options to
purchase the real property:
The Lease includes two options for the District to extend the primary term by 5 lease years
each. The annual rental for each extension term cannot be determined at this time, but is not
anticipated to be equal to the annual rental during the primary term. This is primarily due to
the fact that the net rental rate for the first lease year of each extension term shall be equal to
the then fair market rental rate for comparable properties in the District of Columbia, as
determined by Landlord and the District. In addition to the payment of the new net rental rate
applicable to the first lease year of each extension term, the District shall continue to pay for
escalations in net rental, operating costs and real estate taxes during each extension term. The
Lease does not include any option to purchase the real property.
4. A description of the real property to be acquired, developed or leased, including any
applicable improvements:
Street Address: 1009 11th Street, NW
Square/Lot Number: 0342 / 0810
Total RSF of Building: 30,528
Total RSF of Premises: 30,528
Description of Improvements: An existing 30,528 square foot building located on
approximately 5,227 square feet of land. The District of Columbia Department of Human
Resources (“DHS”) will continue to utilize the Building as shelter swing space, a
hypothermia shelter and to serve its other needs.
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5. A description of the District’s specific real property need associated with the proposed
real estate contract and the selection process, including the number of offerors, the
evaluation criteria, and the evaluation results, including price, technical or quality, and
past performance components:
The District currently leases 1009 11th Street, NW, to serve as swing space for the residents of
the Pat Handy shelter during shelter renovations. The existing lease agreement at 1009 11th
Street, NW, which was deemed approved by Council on December 28, 2020 (CA23-0793),
was the result of a competitive process. The District has exercised the renewal rights provided
in the existing lease agreement, which is scheduled to expire on July 31, 2024.
The proposed lease agreement resulted from a Landlord proposal to the District to enter into a
long-term lease agreement. Under its proposal, Landlord would provide, at its sole cost and
expense, a new modernized elevator, a new HVAC mechanical system, a new egress stairway,
and renovated common restrooms and apartment units meeting DHS specifications. Landlord
would also provide a rent credit in the amount of $1,850,079.84 and a $1,526,400.00 tenant
improvement allowance which will be utilized primarily for furniture, fixtures and equipment.
Prior to Landlord’s building renovation, DHS will use the premises as swing space to house
approximately 50 females. Upon completion of the renovation, the premises will provide the
District with the following:
• Amenities including laundry, storage, employee lounge and salon on the lower level
• Security screening, intake, office, exam clinic and reception areas and bathrooms on the 1st
floor
• Common areas including a dining room, a multipurpose room, a conference room, a
warming kitchen, a pantry and bathrooms on the 2nd floor
• 144 beds in 3-to-4-bedroom pod configurations featuring common areas and full bathrooms
on the 3rd through 8th floors
• All new mechanical systems / HVAC and a modernized elevator serving the entire building
6. A description of any other contracts the proposed contract party is currently seeking or
holds with the District.
Based upon a certification from Landlord, Landlord is not currently seeking and does not
currently hold any contracts with the District other than the existing lease agreement.
7. The background and qualifications of the proposed contract party, including its
organization, principals, financial stability, personnel, and performance on past or
current real estate contracts with requirements similar to those of the proposed contract:
1009 11th Associates, LLC, is a District of Columbia limited liability company and the owner
of 1009 11th Street, NW. Landlord has no employees. Landlord has performed satisfactorily to
date under its existing lease agreement with the District.
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8. Expected outcomes of the proposed real estate contract:
The execution of the proposed real estate contract is expected to result in the continued use by
DHS of the subject space for an additional 15 years and 8 months, and possibly two additional
5 year periods pursuant to the extension options described above.
9. A statement that suitable space owned by the District is not available or cannot be
reasonably renovated or altered:
Based upon an evaluation of space owned by the District, there is no suitable space owned by
the District, either as-is or which can reasonably be renovated or altered, which would meet
the needs of the District under the proposed real estate contract.
10. ANC notice of the proposed real estate contract:
DGS provided written notice, dated April 8, 2024, to ANC 2C04 Commissioner Kristin Roe,
ANC Chairperson Michael Shankle, and Councilmember Brooke Pinto regarding the proposed
real estate contract, as required by applicable law. The notice provided the ANC with an
opportunity to provide written recommendations regarding the proposed contract within thirty
(30) business days. Pursuant to applicable law, DGS would then give great weight to the issues
and concerns raised in any ANC recommendations and provide a written response to the ANC
addressing those issues and concerns. DGS did not receive any written recommendations
regarding the proposed contract from the ANC.
11. A certification that the proposed real estate contract is within the appropriated budget
authority for the agency for the fiscal year and is consistent with the financial plan and
budget adopted in accordance with §§ 47-392.01 and 47-392.02:
The Office of the Chief Financial Officer has certified the availability of funds for the proposed
real estate contract. Please see the attached Funding Certification.
12. A certification that the proposed real estate contract is legally sufficient:
The Office of the General Counsel for the Department of General Services has certified that
the proposed real estate contract is legally sufficient. Please see the attached Legal Sufficiency
Certification.
13. A certification as to whether the proposed contract party has any currently pending legal
claims against the District:
Based upon a certification from Landlord, Landlord does not have any legal claims currently
pending against the District.
14. A certification that the Citywide Clean Hands database indicates that the proposed
contract party is current with its District taxes:
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The proposed contract party is current with its District of Columbia taxes. Please see the
attached Citywide Clean Hands certificate.
15. A certification from the proposed contract party that it is current with its federal taxes,
or has worked out and is current with a payment schedule approved by the federal
government:
Based upon a certification from Landlord, Landlord is current with its federal taxes, or has
worked out and is current with a payment schedule approved by the federal government.
16. A certification that the proposed contract party has not been determined to be in
violation of section 334a of the Board of Ethics and Government Accountability
Establishment and Comprehensive Ethics Reform Amendment Act of 2011:
Based upon a certification from Landlord, Landlord has not been determined to be in violation
of section 334a of the Board of Ethics and Government Accountability Establishment and
Comprehensive Ethics Reform Amendment Act of 2011.
17. A certification from the proposed contract party that it currently is not and will not be
in violation of section 334a of the Board of Ethics and Government Accountability
Establishment and Comprehensive Ethics Reform Amendment Act of 2011:
Based upon a certification from Landlord, Landlord currently is not and will not be in violation
of section 334a of the Board of Ethics and Government Accountability Establishment and
Comprehensive Ethics Reform Amendment Act of 2011.
18. The status of the proposed contract party as a certified local, small, or disadvantaged
business enterprise, as defined in subchapter IX-A of Chapter 2 of title § 2-218.01 et seq.:
The proposed contract party is not a certified local, small, or disadvantaged business enterprise.
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Government of the District of Columbia
Office of the Chief Financial Officer 1101 4th Street, SW
Office of Tax and Revenue Washington, DC 20024
Date of Notice: June 11, 2024 Notice Number: L0011986022
1009 11TH ASSOCIATES LLC FEIN: **-***5213
1655 FORT MYER DR STE 325 Case ID: 8542102
ARLINGTON VA 22209-3120
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
CO
liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code § 47-2862, therefore
this Certificate of Clean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE § 47-2862 (2006)
PY
§ 47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Melinda Jenkins
Branch Chief, Collection and Enforcement Administration
To validate this certificate, please visit MyTax.DC.gov. On the MyTax DC homepage, click the
“Validate a Certificate of Clean Hands” hyperlink under the Clean Hands section.
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE CHIEF FINANCIAL OFFICER
GOVERNMENT OPERATIONS CLUSTER
OFFICE OF FINANCE & RESOURCE MANAGEMENT
Antoinette Hudson Beckham Angelique Rice
Agency Fiscal Officer Associate Chief Financial Officer
Date: May 29, 2024
Agency Budget: Department of General Services (AM0)
Occupying Agency: Department of Human Services (JA0)
Ward: 2
Funds Needed: $317,054.32
Purpose: Funding is needed for a new lease agreement at 1009 11th Street, NW. This site is
currently serving as swing space for the Pat Handy Shelter. Under the new lease,
the space will continue to be utilized for DHS needs.
Certification: This is to certify that $317,054.32 funding is available for FY24 and $951,162.96 is
needed in FY2025, which is subject to approval in the District’s Budget and
Financial Plan.
Cost of Obligation FY 24: $317,054.32
Cost of Obligation FY 25: $951,162.96
Term: 15 Years
___ Henry Wong for AHB __5/29/24 _____________________
Antoinette Hudson Beckham Date
Cc: Angelique Rice, Associate Chief Financial Officer, GOC
441 4th Street, NW – Suite 890 North - Washington, DC 20001
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
Office of the General Counsel
MEMORANDUM
TO: Tomás Talamate
Director, Office of Policy and Legislative Affairs
THROUGH: Xavier Beltran
General Counsel, Department of General Services
FROM: Kimberly C. Jones
Assistant General Counsel, Department of General Services
SUBJECT: Legal Sufficiency Certification for Proposed In-Lease Agreement by and
between the District and 1009 11th Street Associates, LLC for premises at
1009 11th Street, NW, Washington, D.C. (the “Lease”)
DATE: June 5, 2024
This is to certify that this Office has reviewed the above-referenced Lease and that we have found
it to be legally sufficient, subject to the submission of any required materials and Council approval.
If you have any questions, please do not hesitate to contact me at (202) 727-2800.
__________________________
Kimberly C. Jones
Assistant General Counsel, Department of General Services
________________________________________________________________________________________________
3924 Minnesota Avenue, NE, 6th Floor, Washington, D.C. 20019 • Telephone (202) 727-2800
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EXECUTION VERSION
D.C. DEPARTMENT OF GENERAL SERVICES
IN-LEASE AGREEMENT 1. LEASE NO. ____________
AWARD OF IN-LEASE (L-100)
2. BUILDING NAME AND ADDRESS (No., street, city, state, and zip code)
1009 11th Street, NW
Washington, D.C. 20001
3. Your offer is hereby accepted. THIS AWARD CONSUMMATES THE LEASE WHICH CONSISTS OF THE FOLLOWING DOCUMENTS:
(a) this DC DGS Form L-100 (Award of In-Lease),
(b) DC DGS Form L-102 (Accepted Proposal to Lease Space),
(c) DC DGS Form L-105 (In-Lease Agreement Definitions and Standard
Clauses and Provisions),
(d) Exhibit A (Depiction of Premises),
(e) Exhibit B (Legal Description of Land),
(f) Exhibit C (Work Exhibit for Landlord Work and Tenant Improvements),
(g) Exhibit D (Form of Declaration of Delivery),
(h) Exhibit E (Rent Schedule of Net Rental),
(i) Exhibit F (Form of SNDA),
(j) Exhibit G (Form of Tenant Estoppel Certificate), and
(k) Exhibit H (Form of Declaratio